Employee and consumer theft is a significant problem in the United States. It is estimated that such theft costs merchandising retailers billions of dollars each year. These losses result in higher merchandise prices to the consumer and require the retailers to spend a substantial amount in an attempt to prevent, and minimize such losses.
Many stores have hired and continue to hire security guards to observe and apprehend shoplifters. Similarly, many stores have installed video cameras throughout the store and have positioned monitors in a central location for viewing by a guard. Nevertheless, such systems suffer from significant limitations. To begin, stores are required to spend a substantial amount of money to install such systems and pay salaries to guards. Further, at best, most stores can afford to have only a few guards on duty at a given time. Thus, the guards are only able to watch a small fraction of the total customers in the store, even with video systems installed. Further, the use of such systems are wholly ineffective in preventing theft by employees. Thus, the use of guards and/or video cameras is a high priced, relatively ineffective means of combatting retail theft.
In an effort to improve deterrence of retail theft, many stores have installed security systems which include a detection device located at or near the exit doors of the store and a passive electronic device affixed to the merchandise which causes an alarm to be activated unless the device is removed from the product prior to the customer leaving the store. Removal of the device requires a special tool which is typically maintained behind the sales counter so that the electronic device can be removed at the time of purchase. Once again, such systems suffer from significant limitations and disadvantages. A primary disadvantage is that the passive electronic device which is adapted to be secured to a product is bulky, usually a couple inches in length. Thus, there are numerous products which are simply too small to have such an electronic device secured thereto, such as a package of razor blades or gum, which items are the easiest to steal. Further, the passive electronic device typically has a releasable snap or lock which is only adapted to secure to products such as clothing. In fact, security systems of this type are primarily used in the clothing industry for this reason. Yet another disadvantage is the cost of such electronic passive devices. Because of their expense, the devices can only be secured to more expensive items, such as leather jackets or suits. Moreover, in retail locations such as grocery stores, consumers purchase a large number of items. Removal of a device from every item would require a significant amount of time, thus requiring additional clerks and possibly additional sales counters, thereby further driving up the cost of the products.
Finally, a feature common to most products sold in stores is a bar code representing the universal pricing code (UPC). The bar code is printed on the outside of the product packaging, and is readable by a scanner such as a visible laser diode (VLD). The bar code identifies the product and its pricing in a computer system. When the bar code is read by the VLD at the point of purchase, the computer automatically retrieves pricing information and stores information necessary for inventory tracking. However, printing the bar code on the product is an additional cost which increases the price of the product. To date, there have not been any attempts to combine theft detection, inventory tracking, and pricing information in a single device.